PARR Covered Call Strategy
PARR (Par Pacific Holdings, Inc.), in the Energy sector, (Oil & Gas Refining & Marketing industry), listed on NYSE.
Par Pacific Holdings, Inc. is an integrated energy and infrastructure company, managing diverse operations across three key divisions: Refining, Retail, and Logistics. Its Refining segment oversees three facilities that produce a variety of refined petroleum products, including ultra-low sulfur diesel, gasoline, jet fuel, marine fuel, distillates, asphalt, and low sulfur fuel oil. These outputs primarily supply markets in Hawaii, the Pacific Northwest, Wyoming, and South Dakota. The Retail division manages 119 fuel and convenience store locations. In Hawaii, these operate under the Hele, 76, and nomnom banners, offering both fuel and merchandise such as beverages, prepared foods, and other general sundries. Similar retail fuel and convenience offerings are provided in Washington and Idaho through locations branded Cenex, nomnom, and Zip Trip.
PARR (Par Pacific Holdings, Inc.) trades in the Energy sector, specifically Oil & Gas Refining & Marketing, with a market capitalization of approximately $3.90B, a trailing P/E of 4.40, a beta of 0.79 versus the broader market, a 52-week range of 27.76-87.03, average daily share volume of 1.2M, a public-listing history dating back to 2012, approximately 2K full-time employees. These structural characteristics shape how PARR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.79 places PARR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 4.40 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a covered call on PARR?
A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.
PARR snapshot
As of August 14, 2026, spot at $80.40, ATM IV 52.40%, IV rank 29.21%, expected move 15.02%. The covered call on PARR below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this covered call structure on PARR specifically: PARR IV at 52.40% is on the cheap side of its 1-year range, which means a premium-selling PARR covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.02% (roughly $12.08 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PARR expiries trade a higher absolute premium for lower per-day decay. Position sizing on PARR should anchor to the underlying notional of $80.40 per share and to the trader's directional view on PARR stock.
PARR covered call setup
The PARR covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PARR at $80.40 on that close, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PARR chain at a 35-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 PARR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $80.40 | long |
| Sell 1 | Call | $85.00 | $3.70 |
PARR covered call risk and reward
- Net Premium / Debit
- -$7,670.00
- Max Profit (per contract)
- $830.00
- Max Loss (per contract)
- -$7,669.00
- Breakeven(s)
- $76.70
- Risk / Reward Ratio
- 0.108
Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.
PARR covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on PARR. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$7,669.00 |
| $17.79 | -77.9% | -$5,891.42 |
| $35.56 | -55.8% | -$4,113.84 |
| $53.34 | -33.7% | -$2,336.27 |
| $71.11 | -11.6% | -$558.69 |
| $88.89 | +10.6% | +$830.00 |
| $106.66 | +32.7% | +$830.00 |
| $124.44 | +54.8% | +$830.00 |
| $142.22 | +76.9% | +$830.00 |
| $159.99 | +99.0% | +$830.00 |
When traders use covered call on PARR
Covered calls on PARR are an income strategy run on existing PARR stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
PARR thesis for this covered call
The market-implied 1-standard-deviation range for PARR extends from approximately $68.32 on the downside to $92.48 on the upside. A PARR covered call collects premium on an existing long PARR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether PARR will breach that level within the expiration window. Current PARR IV rank near 29.21% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on PARR at 52.40%. As a Energy name, PARR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PARR-specific events.
PARR covered call positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. PARR positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PARR alongside the broader basket even when PARR-specific fundamentals are unchanged. Short-premium structures like a covered call on PARR carry tail risk when realized volatility exceeds the implied move; review historical PARR earnings reactions and macro stress periods before sizing. Always rebuild the position from current PARR chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on PARR?
- A covered call on PARR is the covered call strategy applied to PARR (stock). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. With PARR stock at $80.40 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PARR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PARR covered call max profit and max loss calculated?
- Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the PARR covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 52.40%), the computed maximum profit is $830.00 per contract and the computed maximum loss is -$7,669.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PARR covered call?
- The breakeven for the PARR covered call priced on this page is roughly $76.70 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PARR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a covered call on PARR?
- Covered calls on PARR are an income strategy run on existing PARR stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
- How does current PARR implied volatility affect this covered call?
- PARR ATM IV is at 52.40% with IV rank near 29.21%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.